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How to Start a Construction Company: License, LLC, Insurance
Starting a contracting business means four filings: the company with the secretary of state, the contractor license, the bond and insurance the license calls for, and workers' comp once you hire. LLC filing fees in the states below run from $50 ($85 expedited) in Arizona[azcc.gov] to $300 in Texas[sos.state.tx.us].
- 1Form the businessAn LLC or corporation is filed with the secretary of state. Filing fees by state are in the table below.
- 2Get the state contractor license26 states license general contractors and 9 require registration; the rest leave it to cities and counties or license trades only.
- 3Buy the bond and insuranceLicense bonds and general liability minimums are set by the license board in states that have them.
- 4Set up workers' compEach state insurance page shows when coverage is required and who can file an exemption.
- 5Get your safety cardsOSHA 10 or 30, and EPA 608 for refrigerant work.
- 6Pick your job softwarePublished prices for field service apps.
How much does it cost to form an LLC for a construction company?
State filing fees only; registered agent, publication and franchise tax are extra where they apply.
| State | Formation fee | Recurring fee | How often |
|---|---|---|---|
| Arizona | $50 ($85 expedited) | Ask SOS | |
| California | Ask SOS | ||
| Florida | $100 | $138.75 | annual (due May 1; $538.75 after May 1) |
| Georgia | Ask SOS | ||
| New York | $200 | $9 | biennial (Biennial Statement, 2 yrs after formation) |
| North Carolina | $125 | $200 (paper) / $203 (online) | annual (due Apr 15) |
| Oregon | Ask SOS | ||
| Pennsylvania | $125 | $7 | annual |
| Texas | $300 | $0 | none (franchise tax + Public Information Report via Comptroller) |
| Washington | $180 | $70 | annual |
Do you need a license to start a construction company?
In 35 states you need a state license or registration before you bid general contracting work. Check your state
Sources
- Arizona secretary of state: LLC fees (azcc.gov)
- California secretary of state: LLC fees (sos.ca.gov)
- Florida secretary of state: LLC fees (dos.fl.gov)
- Georgia secretary of state: LLC fees (sos.ga.gov)
- New York secretary of state: LLC fees (dos.ny.gov)
- North Carolina secretary of state: LLC fees (sosnc.gov)
- Oregon secretary of state: LLC fees (sos.oregon.gov)
- Pennsylvania secretary of state: LLC fees (pa.gov)
- Texas secretary of state: LLC fees (sos.state.tx.us)
- Washington secretary of state: LLC fees (sos.wa.gov)